NBN Co Chief Thinks 12Mbps Plans Must be Scrapped

September 4, 2017

Another hit to ISPs and users who are satisfied with an average speed of 8-9 Mbps.

NBN Co. CEO BIll Morrow is back again with another strike that may deeply affect users of specific Australian internet service providers (ISPs), even though the jab is purposely said for ISPs. Saying that the 12Mbps plan was a mistake, Mr  Morrow suggests removing the slowest choice in offered internet services to avoid ISPs misinterpreting what this service can really provide users.

“The fact that we have a 12Mbps product means that’s how [ISPs are] going to price the cheapest number [they] can put on [their NBN offering],” Mr Morrow commenting on the current issue on the said misinterpretation in a statement to a parliamentary committee yesterday.

“Interestingly enough, the designers – before my time – have told me the 12Mbps product was never designed for broadband. It was designed for a voice-based product in case someone in a home says I don’t want to surf the internet over the network, I just want a phone service.

“Now it’s suddenly being used as ‘this is your high speed broadband NBN-enabled product’ because it is cheaper than a 25 Mbps product – ISPs are only paying NBN Co $24 a month versus $27 to ratchet it up to a 25Mbps service,” Mr Morrow added.

“Hence the question: should we have that 12Mbps product in the market at all, and this is part of the consideration that we have.”

After saying his point of wanting to remove the said offer, the CEO himself has not made it clear if it will really become a reality.

As reported by The Sydney Morning Herald, TPG has the second-highest market share and they have 42 per cent of users under 12 Mbps plans, while market leader Telstra has 20 per cent of customers under the 12 Mbps service.

It is true that the 12Mbps offer is the slowest if compared to the other services being offered, which are 25 Mbps, 50 Mbps, and 100 Mbps. However, not all ISPs offer the 50 Mbps option. The 12 Mbps option may be the slowest among the four since the speed is almost the same as ADSL 2+ connection on a copper wire, but it is by far the cheapest choice (depending on internet usage), with prices starting from $29 per month. And, there are a number of people who are happy with this service.

Even though Australians want faster, seamless internet, they still deserve the freedom to choose which plan suits their internet usage and budget. They should not be forced to choose something that is beyond on what they can use and buy. Citizens won’t even rant about services if the NBN knows how to provide and execute excellent service. NBN, please, just do the job and do it right.